Can I Get a Loan for an Auto Repair?
If you own a car, you know the surprising and unexpected expenses it can attract. For many, there is concern for the day the car breaks down, and you don't have any cash lying around for repair costs. In this very real scenario, many look for options and alternatives to get through the headache. One question that may come to mind is if you can get a loan for your auto repairs.
The good news is, yes, obtaining auto repair financing is possible. Read on to learn how this kind of financing works and some alternatives you may want to consider.
Car maintenance and repairs, as well as other critical costs like insurance premiums and fuel, could raise the annual cost of vehicle ownership to $11,305. When your car breaks down unexpectedly, your priority should be fixing it as soon as possible. This will help avoid accidents and even more expensive fixes down the road.
There are several financing options, including credit cards and online payday loans. However, you should consider a loan product that offers a hassle-free experience.
An auto repair loan, which is a form of a personal loan, is ideal because:
Using your savings or emergency fund for auto repairs is a practical and often a recommended strategy for handling unexpected car expenses. By using your savings or emergency fund wisely, you can handle unexpected auto repairs efficiently while maintaining financial stability. This proactive approach helps avoid the stress and costs of borrowing or using credit. If this is an option for you, it’s a great one to consider.
Many lenders offer cost-effective coverage options you can add on top of your loan to help you create a protection plan and ensure peace of mind. ProFed offers Mechanical Repair Coverage or MRC, which is a great way to help deflect some of those costly covered repairs while keeping your vehicle running. Click here to learn more about what MRC covers and how to get a quote today.
Depending on the type of damage and your specific coverage, using your insurance policy for auto repairs can significantly reduce your out-of-pocket expenses. If considering this option, be sure to consider the cost of paying the deductible and be aware of any limits on your coverage amount. Filing a claim might result in higher insurance premiums, and some damages might not even be covered by your insurance.
Some mechanic shops accept credit cards, and this payment option is great when your plastic money has a high limit, or you only need to cover a minor expense. It could even attract benefits such as cashback offers or reward points you can redeem later.
However, you have to remember that outstanding credit card balances each month attract Annual Percentage Rates (APRs) that could easily get you in debt trouble. Failure to fully clear your monthly payment or balance leads to an accruing interest on your card.
Performing DIY auto repairs can be a cost-effective way to handle vehicle maintenance and minor repairs. DIY repairs can save you a significant amount of money on labor costs, which can be a major part of the total repair bill. It is important to remember that DIY repairs can take longer than professional repairs, mistakes can lead to further damage or safety issues, and while many basic tools are affordable, some specialized tools can be expensive.
By approaching DIY auto repairs thoughtfully and prepared, you can save money, gain valuable skills, and maintain your vehicle effectively. Start with manageable tasks and gradually build your expertise, always keeping safety as your top priority.
Some auto repair shops offer payment plans that allow you to pay off the cost of repairs over time. Be sure to inquire about interest rates and loan terms. Mechanic payment plans allow you to spread out the cost of auto repairs over a period of time. Instead of paying the entire bill when you pick up your car, you agree to pay in installments. These plans can be offered directly by the repair shop or through a third-party financing company, depending on your credit score and credit history.
Most people think exclusively of banks when looking for a personal loan. However, did you know you could also get one from a credit union instead? The key thing to remember is to choose a lender with the best terms for your situation.
Credit unions, such as ProFed Credit Union, stand out as some of the best lenders due to the following reasons:
At the end of the day, when your car needs a quick fix, you often need a swift solution. Before choosing any lender, consider their repayment terms, interest rates, and eligibility conditions. The ideal financier should also suit your individual financial needs and circumstances.
At ProFed Credit Union, we have the interests of our members and community at heart. We can help you get a loan that's affordable, flexible, and within your budget. Schedule an appointment today to learn more and experience the difference of a credit union.